HDFC Standard Life Insurance Company Ltd., a subsidiary of mortgage lender HDFC Ltd., filed its draft red herring prospectus for an initial public offering with the market regulator.
The IPO will be an offer for sale for nearly 15 percent of the company’s share capital, or 29.9 crore equity shares at a face value of Rs 10 apiece. Through the offer, HDFC plans to reduce its stake in the insurer by 9.6 percent by selling 19.1 crore shares. Its Mauritius-based joint venture partner, Standard Life Plc, will offload another 10.86 crore shares, reducing its stake by 5.4 percent.
The company may be looking to raise up to Rs 10,000 crore, one banker privy to the development told BloombergQuint.
A portion of the offer, around 21.4 lakh shares, will be reserved for HDFC Life employees, another 8 lakh shares will be blocked for parent company HDFC’s employees. Around 2.9 crore shares or 1.5 percent will be reserved for the shareholders of HDFC. That leaves nearly 26.6 crore shares for the public.
The IPO was announced after HDFC Life’s proposed merger with Max Life Insurance was delayed due to regulatory hurdles. Analjit Singh-led Max Group had then called off the deal.
Morgan Stanley, HDFC Bank, Credit Suisse, CITIC CLSA Securities and Nomura Financial Advisory and Securities are managing the issue among others.